Consider the following partial MPS record. Beginning inventory is 60 units. When should the first MPS shipment be scheduled?

A)period 1
B)period 2
C)period 3
D)period 4
E)period 5

Question

Consider the following partial MPS record. Beginning inventory is 60 units. When should the first MPS shipment be scheduled?

A)period 1 
B)period 2 
C)period 3 
D)period 4 
E)period 5

Quizplus · Accepted Answer

The first MPS shipment should be scheduled in period 2, since there is a large drop in forecasted demand from period 1 to period 2 (from 60 to 5), and the projected available inventory in period 2 is only 55 units (60 beginning inventory - 5 period 1 forecast). By scheduling an MPS shipment in period 2, the projected available inventory will be increased, helping to meet the higher forecasted demand in period 3.

Consider the Following Partial MPS Record